Scrolling Headlines From Yahoo in Play
NEW YORK (AP) — Health insurer Aetna Inc. said Monday its profit skidded 28 percent in the second quarter due to higher medical expenses in its commercial business, which it expects to continue for the rest of the year.
The Hartford, Conn., company said it earned $346.6 million, or 77 cents per share, compared with $480.5 million, or 97 cents per share. Adjusted earnings per share were 68 cents. Revenue grew 11 percent to $8.67 billion from $7.83 billion.
Thomson Reuters says analysts expected 78 cents per share and revenue of $8.56 billion.
Aetna said its medical benefit ratio, which measures the portion of premium dollars spent on providing care, rose to 86.8 percent from 81.9 percent a year ago. Costs in the commercial, Medicare and Medicaid business all increased.
Premium revenue grew 12 percent, and medical membership was flat at 19.1 million.
The company had been scheduled to post its earnings on Wednesday, but announced Sunday it would be reporting on Monday. It did not give a reason for the change.
Aetna said commercial medical costs increased due to use of more expensive services, and more tests and procedures per visit. That lead to higher costs for emergency room, urgent care, laboratory and preventive services. Aetna said its prices did not fully account for the higher costs, and said health plan providers are changing their behavior due to the recession.
It cut its annual profit forecast for the second time in two months. The company now expects to earn between $2.75 to $2.90 per share. On June 2, it lowered its profit estimate to a range of $3.55 to $3.70 per share, also because of greater commercial medical costs and lower Medicare revenue. Analysts expect earnings of $3.53 per share and $34.35 billion in revenue.
Aetna expects to spend between 84 and 84.5 percent of its commercial premium revenue on providing medical care.
The Wall Street Journal reported Monday that Aetna is shopping its pharmacy benefits management business, which had about 11.2 million members at the end of the second quarter. Aetna has reportedly been considering a sale for several months and no deal was said to be imminent.
According to the report, independent pharmacy benefits managers CVS Caremark Corp. and Medco Health Solutions Inc. have looked into buying the Aetna business. Another health insurer, WellPoint Inc., sold its pharmacy benefits management unit to Express Scripts Inc. in April.
ROCHESTER, N.Y. (AP) — Corning Inc. says it earned $611 million in the second quarter on a rebound in demand for glass used in flat-screen televisions.
The world’s largest maker of liquid-crystal-display glass says its profit in the April-June period was down from $3.2 billion, or $2.01 a share, a year earlier when it recorded a one-time gain of $2.43 billion.
Excluding special items, however, its profit of 39 cents a share easily beat Wall Street’s forecast of 32 cents a share.
Corning says sales fell 18 percent to $1.4 billion but that also tops analysts’ forecasts of $1.36 billion.
BEIJING, July 27 /PRNewswire-Asia/ — Sohu.com Inc. (Nasdaq: SOHU – News), China’s leading online media, communications, search, online games and mobile value-added services company, today reported unaudited financial results for the second quarter ended June 30, 2009.
Explanation of the Company’s non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying ”Non-GAAP Disclosure” and the “Reconciliation to Unaudited Condensed Consolidated Statements of Operations.”
Dr. Charles Zhang, chairman and CEO of Sohu.com, commented, ”We are pleased to report another quarter of solid financial results from a unique combination of our two core businesses, our portal business and online game business. Even in this weak economic environment, our portal business continues to show modest growth and a strong ability to grab market share. Our ongoing investment in branding, content offering, and technological products has continued to strengthen our leading position as one of the most powerful mainstream media platforms in China.
”Our online game business delivered another quarter of record revenues and as a strong defensive play in a difficult economic environment it continues to be an ideal complement to our portal business. We are resolute in our efforts to build the online game business for the long-term by utilizing Changyou’s game development platform, player feedback system and strong R&D capabilities to deliver quality games that improve the user experience. We remain confident that this focus and growing user base, will allow our online game business to maintain its upward momentum.”
Dr. Zhang continued, ”As we continue to execute on our strategy, we expect ongoing synergies between our portal business and our online game business to secure long-term and sustainable growth for Sohu.”
Commenting on Sohu’s brand advertising business, Ms. Belinda Wang, Sohu.com co-president and chief marketing officer, added, “Despite tough year-on-year comparisons from heavy ad spending leading up to the 2008 Beijing Olympic Games, brand advertising revenues grew at 5% year-on-year, demonstrating that our continual investments in branding, content offering and technological products are paying off. On the advertising business front, advertisers have begun to deploy their budgets in response to signs of economic recovery in China and increasingly look toward internet media as a cost-effective alternative to advertising in traditional media. Our strong user growth, robust media platform and continually evolving technologies make Sohu well-positioned to capitalize on these trends.”
Second Quarter Financial Results
Revenues
Total revenues for the second quarter ended June 30, 2009 were US$127.1 million, representing an increase of 10% sequentially and an increase of 25% year-on-year.
Brand advertising revenues for the second quarter of 2009 totaled US$43.6 million, representing a sequential increase of 12% and a year-on-year increase of 5%.
Online game revenues for the second quarter of 2009 were US$66.6 million, representing an increase of 8% sequentially and 39% year-on-year.
Wireless revenues for the second quarter of 2009 were US$15.0 million, an increase of 12% sequentially and 63% year-on-year. The increase in wireless revenues was mainly because the Company promoted its products through a greater number of channels.
Gross Margin
Gross margin was 77% in the second quarter of 2009, compared to 76% in the first quarter of 2009, and 76% in the second quarter of 2008. Non-GAAP gross margin for the second quarter of 2009 was 78%, compared with 76% in both the first quarter of 2009 and the second quarter of 2008……
* Q2 revenue $385.4 mln vs Wall St. view of $382.6
* Sees Q3 rev “flat to up by mid-single-digit” vs Q2
NEW YORK, July 27 (Reuters) – Network equipment maker Tellabs Inc (TLAB.O) on Monday reported an 11 percent drop in quarterly earnings as phone companies cut back on technology spending.
The supplier of network gear to major operators such as AT&T Inc (T.N) and Verizon Communications Inc (VZ.N), said second-quarter revenue fell to $385.4 million from $432.5 million a year earlier.
The drop was a bit more moderate than Wall Street had expected. The average analyst forecast was for revenue of $382.6 million, according to Reuters Estimates.
Net profit for the quarter fell to $15.7 million, or 4 cents a share, down from $39.0 million, or 10 cents a share, a year earlier.
Profit excluding special items rose to 8 cents a share from 4 cents. This comparison excluded a 9-cent tax benefit in the year-ago quarter.
Tellabs, which competes with Alcatel-Lucent (ALUA.PA), forecast third-quarter revenue to be “flat to up by a mid-single-digit percentage” from the previous quarter.
WASHINGTON (AP) — Honeywell International Inc. says its second quarter earnings dropped 38 percent as the company’s businesses in troubled sectors like automobiles and construction continued to drag down its results.
The company says it doesn’t expect any recovery this year from the recession.
The Morristown, N.J.-based diversified manufacturer said Monday it earned $450 million, or 60 cents per share, the the three months ended June 30. That’s down from $723 million, or 96 cents per share, a year ago but matches analysts’ expectations.
Honeywell says its revenue fell 22 percent to $7.56 billion. Analysts were expecting revenue of $7.73 billion.
Honeywell says it expects 2009 earnings of $2.85 per share on revenue of $31.5 billion, at the low end of its previous guidance. Analysts foresee $2.83 per share and revenue of $32.61 billion.
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